* Dollar nurses losses after jobs data disappoints bulls
* Euro squeezes higher, but wary as ECB policy meeting looms
* Aussie dollar eyes retail sales ahead of RBA policy review
By Ian Chua
SYDNEY, Aug 4 The U.S. dollar got off to a calm
start on Monday, having suffered its biggest one-day fall in
nearly a month after a batch of economic data led markets to
push back expectations for the start of the Federal Reserve's
U.S. jobs growth slowed in July, the unemployment rate
unexpectedly edged up and inflation was restrained, a mix of
figures that should give the Fed plenty of room to keep interest
rates low for a while yet.
"The July jobs data won't change the Fed's benign stance as
it was about as "goldilocks" as it could be," said Shane Oliver,
Head of Investment Strategy at AMP Capital in Sydney.
The dollar index was last at 81.321, having retreated
from a 10-1/2 month peak of 81.573. It had fallen 0.2 percent on
Friday, a modest decline by any measure but still the biggest
one-day fall in over three weeks.
The index had rallied more than 2 percent in July, a feat
not seen in over a year, as improving U.S. data convinced
markets the an interest rate rise could be less than 12 months
So any disappointment in the jobs figures was always going
to prompt a bit of profit taking, traders said.
That allowed the euro to push back above $1.3400 and
off an eight-month trough of $1.3366 plumbed last week. Against
the yen, the greenback recoiled to 102.56, having
stretched to a near four-month high of 103.15.
The safe-haven yen also gained ground against the Australian
and New Zealand dollars, partly supported by safety flows as
worries about Argentina's debt default and tensions between
Russia and the West sent European and U.S. shares lower.
Not likely to help risk appetite, data on Sunday showed
growth in China's services sector slipped to a six-month low in
July as new orders rose by their weakest rate in at least a
Broad softness in the greenback saw the Aussie dollar pop
back above 93 U.S. cents, from two-month lows of
In the very short term, Aussie bulls will be looking to
retail sales data due at 0130 GMT for fresh impetus, ahead of an
interest rate meeting by the Reserve Bank of Australia (RBA) on
The European Central Bank, Bank of Japan and Bank of England
(BOE) will also feature this week, but as with the RBA, no
policy action is expected from any of them.
(Editing by Shri Navaratnam)